Download Zipped Introduced WP 9 SB1004.ZIP 25,716 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 1004

             1     

REGISTRATION AND TAXATION OF

             2     
VEHICLES FOR SPORTS EVENTS

             3     
2001 FIRST SPECIAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: John W. Hickman

             6      This act modifies provisions related to Motor Vehicles and Revenue and Taxation to address
             7      the issuance of temporary permits or temporary sports event registration certificates by the
             8      Motor Vehicle Enforcement Division or a motor vehicle dealer, and to address the
             9      suspension or revocation of the authority of a motor vehicle dealer to issue a temporary
             10      permit or a temporary sports event registration certificate. The act requires the Motor
             11      Vehicle Enforcement Division to impose fees for issuing a temporary permit or a temporary
             12      sports event registration certificate, and provides that the fees may be used as dedicated
             13      credits toward the costs incurred in issuing temporary permits and temporary sports event
             14      registration certificates. The act subjects a motor vehicle issued a temporary sports event
             15      registration certificate to a $5 uniform fee in lieu of property taxes, addresses the imposition
             16      of property taxes and uniform fees on tangible personal property, and provides a sales and
             17      use tax exemption for the lease or use of a motor vehicle issued a temporary sports event
             18      registration certificate. The act makes technical changes.
             19      This act affects sections of Utah Code Annotated 1953 as follows:
             20      AMENDS:
             21          41-1a-202, as last amended by Chapter 245, Laws of Utah 1998
             22          41-3-304, as renumbered and amended by Chapter 234, Laws of Utah 1992
             23          59-2-405, as last amended by Chapter 322, Laws of Utah 1998
             24          59-2-405.1, as enacted by Chapter 322, Laws of Utah 1998
             25          59-12-104, as last amended by Chapters 170, 243 and 262, Laws of Utah 2001
             26      ENACTS:
             27          41-3-306, Utah Code Annotated 1953


             28          41-3-603, Utah Code Annotated 1953
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 41-1a-202 is amended to read:
             31           41-1a-202. Definitions -- Vehicles exempt from registration -- Registration of vehicles
             32      after establishing residency.
             33          (1) In this section:
             34          (a) "Domicile" means the place:
             35          (i) where an individual has a fixed permanent home and principal establishment;
             36          (ii) to which the individual if absent, intends to return; and
             37          (iii) in which the individual and his family voluntarily reside, not for a special or
             38      temporary purpose, but with the intention of making a permanent home.
             39          (b) (i) "Resident" means any of the following:
             40          (A) an individual who:
             41          (I) has established a domicile in this state;
             42          (II) regardless of domicile, remains in this state for an aggregate period of six months or
             43      more during any calendar year;
             44          (III) engages in a trade, profession, or occupation in this state or who accepts employment
             45      in other than seasonal work in this state and who does not commute into the state;
             46          (IV) declares himself to be a resident of this state for the purpose of obtaining a driver
             47      license or motor vehicle registration; or
             48          (V) declares himself a resident of Utah to obtain privileges not ordinarily extended to
             49      nonresidents, including going to school, or placing children in school without paying nonresident
             50      tuition or fees;
             51          (B) any individual, partnership, limited liability company, firm, corporation, association,
             52      or other entity that:
             53          (I) maintains a main office, branch office, or warehouse facility in this state and that bases
             54      and operates a motor vehicle in this state; or
             55          (II) operates a motor vehicle in intrastate transportation for other than seasonal work.
             56          (ii) "Resident" does not include any of the following:
             57          (A) a member of the military temporarily stationed in Utah; and
             58          (B) an out-of-state student, as classified by the institution of higher education, enrolled


             59      with the equivalent of seven or more quarter hours, regardless of whether the student engages in
             60      a trade, profession, or occupation in this state or accepts employment in this state.
             61          (2) Registration under this chapter is not required for any:
             62          (a) vehicle registered in another state and owned by a nonresident of the state or operating
             63      under a temporary registration permit issued by the division or a dealer authorized by this chapter,
             64      driven or moved upon a highway in conformance with the provisions of this chapter relating to
             65      manufacturers, transporters, dealers, lien holders, or interstate vehicles;
             66          (b) vehicle driven or moved upon a highway only for the purpose of crossing the highway
             67      from one property to another;
             68          (c) implement of husbandry, whether of a type otherwise subject to registration or not, that
             69      is only incidentally operated or moved upon a highway;
             70          (d) special mobile equipment;
             71          (e) vehicle owned or leased by the federal government;
             72          (f) motor vehicle not designed, used, or maintained for the transportation of passengers
             73      for hire or for the transportation of property if the motor vehicle is registered in another state and
             74      is owned and operated by a nonresident of this state;
             75          (g) vehicle or combination of vehicles designed, used, or maintained for the transportation
             76      of persons for hire or for the transportation of property if the vehicle or combination of vehicles
             77      is registered in another state and is owned and operated by a nonresident of this state and if the
             78      vehicle or combination of vehicles has a gross laden weight of 26,000 pounds or less;
             79          (h) trailer of 750 pounds or less unladen weight and not designed, used, and maintained
             80      for hire for the transportation of property or person;
             81          (i) manufactured home or mobile home;
             82          (j) off-highway vehicle currently registered under Section 41-22-3 if the off-highway
             83      vehicle is:
             84          (i) being towed;
             85          (ii) operated on a street or highway designated as open to off-highway vehicle use; or
             86          (iii) operated in the manner prescribed in Section 41-22-10.3 ;
             87          (k) off-highway implement of husbandry operated in the manner prescribed in Subsections
             88      41-22-5.5 (3) through (5);
             89          (l) modular and prebuilt homes conforming to the uniform building code and presently


             90      regulated by the United States Department of Housing and Urban Development that are not
             91      constructed on a permanent chassis;
             92          (m) electric assisted bicycles defined under Section 41-6-1 ; or
             93          (n) motor assisted scooters defined under Section 41-6-1 .
             94          (3) Unless otherwise exempted under Subsection (2), registration under this chapter is
             95      required for any motor vehicle, combination of vehicles, trailer, semitrailer, or vintage vehicle
             96      within 60 days of the owner establishing residency in this state.
             97          (4) A motor vehicle that is registered under Section 41-3-306 is exempt from the
             98      registration requirements of this part for the time period that the registration under Section
             99      41-3-306 is valid.
             100          Section 2. Section 41-3-304 is amended to read:
             101           41-3-304. Temporary permits -- Temporary sports event registration certificate --
             102      Suspension or revocation of dealer's authority to issue -- Return of temporary permits to
             103      division -- Refunds -- Appeal.
             104          (1) The division may suspend or revoke [the privilege of issuing] a dealer's authority to
             105      issue a temporary [permits when it] permit or a temporary sports event registration certificate under
             106      this part if the division determines the dealer has failed to comply with this chapter or with any
             107      rules made by the [administrator] commission under [Section 41-3-302 ] this part.
             108          (2) (a) Suspension or revocation of authority to issue a temporary [permits] permit or a
             109      temporary sports event registration certificate takes effect immediately upon written notification
             110      to the [licensee] dealer by the division.
             111          (b) Upon notification, the [licensee] dealer shall immediately return all temporary permits
             112      to the division.
             113          (c) [If] Subject to Subsection (2)(d), if the authority to issue a temporary permit under
             114      Section 41-3-302 is revoked or suspended for more than 30 days, the dealer may apply for a refund
             115      of the money paid to the division only for [all] temporary permits described in Section 41-3-302
             116      that are returned prior to issuance.
             117          (d) [Permits] Temporary permits being returned may not have ever been issued, written
             118      on, or separated from their stubs, and shall be in useable condition.
             119          [(3) Failure to return the permits or to continue issuing them after the authority is
             120      suspended or revoked is a violation of this chapter and grounds for automatic suspension of a


             121      dealer's license.]
             122          (3) If the division suspends or revokes a dealer's authority to issue a temporary permit or
             123      a temporary sports event registration certificate as provided in this section, each of the following
             124      is a violation of this chapter and grounds for automatic suspension of the dealer's license:
             125          (a) failure to return a temporary permit to the division as provided in this section; or
             126          (b) issuing a:
             127          (i) temporary permit; or
             128          (ii) temporary sports event registration certificate.
             129          (4) (a) [If a licensee desires to] A dealer may appeal the division's suspension or
             130      revocation[, he shall file] by filing a written appeal with the administrator within ten days of the
             131      suspension or revocation.
             132          (b) Upon receiving the [licensee's] dealer's written appeal, the administrator shall set a
             133      hearing for not more than 20 days from the date the written appeal is received.
             134          [(c) The licensee may not continue to issue or possess any temporary permits while his
             135      authority is suspended or revoked.]
             136          [(d) The] (c) A hearing [and subsequent] or appeal [process are] under this section shall
             137      be conducted in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             138          Section 3. Section 41-3-306 is enacted to read:
             139          41-3-306. Temporary sports event registration -- Definitions -- Expiration -- Fees --
             140      Rulemaking authority.
             141          (1) As used in this section:
             142          (a) "Distributor-provided vehicle" means a motor vehicle:
             143          (i) that has never been titled or registered in any state; and
             144          (ii) the use of which is donated by a distributor licensed under Part 2, Licensing, through
             145      a dealer licensed under Part 2, Licensing.
             146          (b) (i) "Event period" means a time period:
             147          (A) during which a sports event takes place;
             148          (B) not to exceed 180 consecutive calendar days; and
             149          (C) specified by the division on a temporary sports event registration certificate.
             150          (ii) "Event period" may include one or more of the following time periods if the division
             151      determines that good cause exists for including the time period within the event period:


             152          (A) a reasonable time period before a sports event as determined by the division; or
             153          (B) a reasonable time period after a sports event as determined by the division.
             154          (c) (i) Notwithstanding Section 41-3-102 and except as provided in Subsection (1)(c)(ii),
             155      "motor vehicle" means a motor vehicle that is subject to the uniform fee imposed by Section
             156      59-2-405.1 .
             157          (ii) "Motor vehicle" does not include a state-assessed commercial vehicle as defined in
             158      Section 59-2-102 .
             159          (d) (i) "Sports event" means an amateur or professional:
             160          (A) sports:
             161          (I) game;
             162          (II) race; or
             163          (III) contest; or
             164          (B) athletic:
             165          (I) game;
             166          (II) race; or
             167          (III) contest.
             168          (ii) "Sports event" includes a game, race, or contest described in Subsection (1)(d)(i) that
             169      is:
             170          (A) an independent game, race, or contest; or
             171          (B) a part of another event or activity regardless of whether the other event or activity is
             172      an event or activity relating to sports or athletics.
             173          (e) "Temporary sports event registration certificate" means a motor vehicle certificate of
             174      registration issued by the division to a dealer in accordance with this section.
             175          (2) Beginning on September 1, 2001, the division may register a motor vehicle for an event
             176      period by issuing to a dealer licensed under Part 2, Licensing, a temporary sports event registration
             177      certificate if the division determines that:
             178          (a) the motor vehicle is a distributor-provided vehicle;
             179          (b) the motor vehicle will be used for a sports event within the state during the event
             180      period; and
             181          (c) the dealer provides the division an application stating:
             182          (i) the person to whom the distributor is donating use of the motor vehicle;


             183          (ii) the motor vehicle identification number;
             184          (iii) the motor vehicle:
             185          (A) make;
             186          (B) model; and
             187          (C) year;
             188          (iv) the name of the sports event;
             189          (v) the beginning date and ending date of the sports event; and
             190          (vi) any other information the division requires.
             191          (3) If the division issues a temporary sports event registration certificate to a dealer
             192      licensed under Part 2, Licensing:
             193          (a) the division:
             194          (i) shall specify the event period on the temporary sports event registration certificate; and
             195          (ii) may specify any other information on the temporary sports event registration certificate
             196      as determined by the division; and
             197          (b) the dealer shall for each motor vehicle for which the division issues a temporary sports
             198      event registration certificate:
             199          (i) pay the:
             200          (A) registration fees required by Chapter 1a, Part 12, Fee and Tax Requirements; and
             201          (B) uniform fee required by Section 59-2-405.1 ; and
             202          (ii) place the temporary sports event registration certificate in the rear license plate holder
             203      of the motor vehicle.
             204          (4) A temporary sports event registration certificate issued by the division under this
             205      section is valid for the event period specified on the temporary sports event registration certificate.
             206          (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             207      commission may make rules:
             208          (a) specifying the information to be provided to the division by a dealer or a person using
             209      a distributor-provided vehicle in connection with the issuance of a temporary sports event
             210      registration certificate;
             211          (b) specifying the form for a temporary sports event registration certificate; or
             212          (c) defining the terms:
             213          (i) "reasonable time period before a sports event"; and


             214          (ii) "reasonable time period after a sports event."
             215          Section 4. Section 41-3-603 is enacted to read:
             216          41-3-603. Fees for temporary permits and temporary sports event registration
             217      certificates -- Dedicated credits -- Use of fees.
             218          (1) A dealer shall pay to the division a fee of $6 for each of the following the division
             219      issues to the dealer:
             220          (a) a temporary permit under Section 41-3-302 ; or
             221          (b) a temporary sports event registration certificate under Section 41-3-306 .
             222          (2) The division may use fees collected under Subsection (1) as dedicated credits to be
             223      used toward the costs of the division.
             224          Section 5. Section 59-2-405 is amended to read:
             225           59-2-405. Uniform fee on tangible personal property required to be registered with
             226      the state.
             227          (1) The property described in Subsection (2), except Subsections (2)(b)(ii) and (iii), is
             228      exempt from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 14.
             229          (2) (a) Except as provided in Subsection (2)(b), there is levied [an annual] as provided in
             230      this part a statewide uniform fee in lieu of the ad valorem tax on:
             231          (i) motor vehicles required to be registered with the state that weigh 12,001 pounds or
             232      more;
             233          (ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with the
             234      state;
             235          [(ii)] (iii) watercraft required to be registered with the state;
             236          [(iii)] (iv) recreational vehicles required to be registered with the state; and
             237          [(iv)] (v) all other tangible personal property required to be registered with the state before
             238      it is used on a public highway, on a public waterway, on public land, or in the air.
             239          (b) The following personal property is exempt from the statewide uniform fee imposed by
             240      this section:
             241          (i) aircraft;
             242          (ii) vintage vehicles as defined in Section 41-21-1 ;
             243          (iii) state-assessed commercial vehicles; [and]
             244          (iv) tangible personal property subject to a uniform fee imposed by Section 59-2-405.1 ;


             245      and
             246          [(iv)] (v) personal property that is exempt from state or county ad valorem property taxes
             247      under the laws of this state or of the federal government.
             248          (3) Beginning on January 1, 1999, the uniform fee is 1.5% of the fair market value of the
             249      personal property, as established by the commission.
             250          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is brought
             251      into the state and is required to be registered in Utah shall, as a condition of registration, be subject
             252      to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have
             253      been paid for the current calendar year.
             254          (5) (a) The revenues collected in each county from the uniform fee shall be distributed by
             255      the county to each taxing entity in which the property described in Subsection (2) is located in the
             256      same proportion in which revenue collected from ad valorem real property tax is distributed.
             257          (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the
             258      same proportion in which revenue collected from ad valorem real property tax is distributed.
             259          (6) Appeals of the valuation of the tangible personal property described in Subsection (2)
             260      shall be filed pursuant to Section 59-2-1005 .
             261          Section 6. Section 59-2-405.1 is amended to read:
             262           59-2-405.1. Uniform fee on tangible personal property weighing 12,000 pounds or
             263      less.
             264          (1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt from
             265      ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 14.
             266          (2) (a) Except as provided in Subsection (2)(b), there is levied [an annual] as provided in
             267      this part a statewide uniform fee in lieu of the ad valorem tax on:
             268          (i) motor vehicles as defined in Section 41-1a-102 that:
             269          (A) are required to be registered with the state [that]; and
             270          (B) weigh 12,000 pounds or less; and
             271          (ii) state-assessed commercial vehicles required to be registered with the state that weigh
             272      12,000 pounds or less.
             273          (b) The following personal property is exempt from the statewide uniform fee imposed by
             274      this section:
             275          (i) aircraft;


             276          (ii) vintage vehicles as defined in Section 41-21-1 ; [and]
             277          (iii) tangible personal property subject to the uniform fee imposed by Section 59-2-405 ;
             278      and
             279          [(iii)] (iv) tangible personal property that is exempt from state or county ad valorem
             280      property taxes under the laws of this state or of the federal government.
             281          (3) [Beginning] (a) Except as provided in Subsection (3)(b), beginning on January 1, 1999,
             282      the uniform fee [under Subsection (2)] for purposes of this section is as follows:
             283               Age of Vehicle                     Uniform Fee
             284              12 or more years                        $10
             285              9 or more years but less than 12 years            $50
             286              6 or more years but less than 9 years                $80
             287              3 or more years but less than 6 years                $110
             288              Less than 3 years                        $150
             289          (b) Notwithstanding Subsection (3)(a), beginning on September 1, 2001, for a motor
             290      vehicle issued a temporary sports event registration certificate in accordance with Section
             291      41-3-306 , the uniform fee for purposes of this section is $5 for the event period specified on the
             292      temporary sports event registration certificate regardless of the age of the motor vehicle.
             293          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is brought
             294      into the state and is required to be registered in Utah shall, as a condition of registration, be subject
             295      to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have
             296      been paid for the current calendar year.
             297          (5) (a) The revenues collected in each county from the uniform fee shall be distributed by
             298      the county to each taxing entity in which the property described in Subsection (2) is located in the
             299      same proportion in which revenue collected from ad valorem real property tax is distributed.
             300          (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the
             301      same proportion in which revenue collected from ad valorem real property tax is distributed.
             302          (6) Appeals of the valuation of the tangible personal property described in Subsection (2)
             303      shall be filed pursuant to Section 59-2-1005 .
             304          Section 7. Section 59-12-104 is amended to read:
             305           59-12-104. Exemptions.
             306          The following sales and uses are exempt from the taxes imposed by this chapter:


             307          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             308      under Chapter 13, Motor and Special Fuel Tax Act;
             309          (2) sales to the state, its institutions, and its political subdivisions; however, this exemption
             310      does not apply to sales of construction materials except:
             311          (a) construction materials purchased by or on behalf of institutions of the public education
             312      system as defined in Utah Constitution Article X, Section 2, provided the construction materials
             313      are clearly identified and segregated and installed or converted to real property which is owned by
             314      institutions of the public education system; and
             315          (b) construction materials purchased by the state, its institutions, or its political
             316      subdivisions which are installed or converted to real property by employees of the state, its
             317      institutions, or its political subdivisions;
             318          (3) sales of food, beverage, and dairy products from vending machines in which the
             319      proceeds of each sale do not exceed $1 if the vendor or operator of the vending machine reports
             320      an amount equal to 150% of the cost of items as goods consumed;
             321          (4) sales of food, beverage, dairy products, similar confections, and related services to
             322      commercial airline carriers for in-flight consumption;
             323          (5) sales of parts and equipment installed in aircraft operated by common carriers in
             324      interstate or foreign commerce;
             325          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             326      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             327      exhibitor, distributor, or commercial television or radio broadcaster;
             328          (7) sales of cleaning or washing of tangible personal property by a coin-operated laundry
             329      or dry cleaning machine;
             330          (8) (a) except as provided in Subsection (8)(b), sales made to or by religious or charitable
             331      institutions in the conduct of their regular religious or charitable functions and activities, if the
             332      requirements of Section 59-12-104.1 are fulfilled;
             333          (b) the exemption provided for in Subsection (8)(a) does not apply to the following sales,
             334      uses, leases, or rentals relating to the Olympic Winter Games of 2002 made to or by an
             335      organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
             336      Code:
             337          (i) retail sales of Olympic merchandise;


             338          (ii) except as provided in Subsection (51), admissions or user fees described in Subsection
             339      59-12-103 (1)(f);
             340          (iii) sales of accommodations and services as provided in Subsection 59-12-103 (1)(i),
             341      except for accommodations and services:
             342          (A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
             343      of 2002;
             344          (B) exclusively used by:
             345          (I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
             346      Olympic Winter Games of 2002; or
             347          (II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
             348      Games of 2002; and
             349          (C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
             350      does not receive reimbursement; or
             351          (iv) a lease or rental of a vehicle as defined in Section 41-1a-102 , except for a lease or
             352      rental of a vehicle:
             353          (A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
             354      of 2002;
             355          (B) exclusively used by:
             356          (I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
             357      Olympic Winter Games of 2002; or
             358          (II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
             359      Games of 2002; and
             360          (C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
             361      does not receive reimbursement;
             362          (9) sales of vehicles of a type required to be registered under the motor vehicle laws of this
             363      state which are made to bona fide nonresidents of this state and are not afterwards registered or
             364      used in this state except as necessary to transport them to the borders of this state;
             365          (10) sales of medicine;
             366          (11) sales or use of property, materials, or services used in the construction of or
             367      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             368          (12) (a) sales of meals served by:


             369          (i) the following if the meals are not available to the general public:
             370          (A) a church; or
             371          (B) a charitable institution;
             372          (ii) an institution of higher education if:
             373          (A) the meals are not available to the general public; or
             374          (B) the meals are prepaid as part of a student meal plan offered by the institution of higher
             375      education; or
             376          (b) inpatient meals provided at:
             377          (i) a medical facility; or
             378          (ii) a nursing facility;
             379          (13) isolated or occasional sales by persons not regularly engaged in business, except the
             380      sale of vehicles or vessels required to be titled or registered under the laws of this state in which
             381      case the tax is based upon:
             382          (a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
             383      or
             384          (b) in the absence of a bill of sale or other written evidence of value, the then existing fair
             385      market value of the vehicle or vessel being sold as determined by the commission;
             386          (14) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
             387          (i) machinery and equipment:
             388          (A) used in the manufacturing process;
             389          (B) having an economic life of three or more years; and
             390          (C) used:
             391          (I) to manufacture an item sold as tangible personal property; and
             392          (II) in new or expanding operations in a manufacturing facility in the state; and
             393          (ii) subject to the provisions of Subsection (14)(b), normal operating replacements that:
             394          (A) have an economic life of three or more years;
             395          (B) are used in the manufacturing process in a manufacturing facility in the state;
             396          (C) are used to replace or adapt an existing machine to extend the normal estimated useful
             397      life of the machine; and
             398          (D) do not include repairs and maintenance;
             399          (b) the rates for the exemption under Subsection (14)(a)(ii) are as follows:


             400          (i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
             401      Subsection (14)(a)(ii) is exempt;
             402          (ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
             403      Subsection (14)(a)(ii) is exempt; and
             404          (iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (14)(a)(ii)
             405      is exempt;
             406          (c) for purposes of this Subsection (14), the commission shall by rule define the terms
             407      "new or expanding operations" and "establishment"; and
             408          (d) on or before October 1, 1991, and every five years after October 1, 1991, the
             409      commission shall:
             410          (i) review the exemptions described in Subsection (14)(a) and make recommendations to
             411      the Revenue and Taxation Interim Committee concerning whether the exemptions should be
             412      continued, modified, or repealed; and
             413          (ii) include in its report:
             414          (A) the cost of the exemptions;
             415          (B) the purpose and effectiveness of the exemptions; and
             416          (C) the benefits of the exemptions to the state;
             417          (15) sales of tooling, special tooling, support equipment, and special test equipment used
             418      or consumed exclusively in the performance of any aerospace or electronics industry contract with
             419      the United States government or any subcontract under that contract, but only if, under the terms
             420      of that contract or subcontract, title to the tooling and equipment is vested in the United States
             421      government as evidenced by a government identification tag placed on the tooling and equipment
             422      or by listing on a government-approved property record if a tag is impractical;
             423          (16) intrastate movements of:
             424          (a) freight by common carriers; and
             425          (b) passengers:
             426          (i) by taxicabs as described in SIC Code 4121 of the 1987 Standard Industrial
             427      Classification Manual of the federal Executive Office of the President, Office of Management and
             428      Budget; or
             429          (ii) transported by an establishment described in SIC Code 4111 of the 1987 Standard
             430      Industrial Classification Manual of the federal Executive Office of the President, Office of


             431      Management and Budget, if the transportation originates and terminates within a county of the
             432      first, second, or third class;
             433          (17) sales of newspapers or newspaper subscriptions;
             434          (18) tangible personal property, other than money, traded in as full or part payment of the
             435      purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by
             436      a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
             437          (a) the bill of sale or other written evidence of value of the vehicle being sold and the
             438      vehicle being traded in; or
             439          (b) in the absence of a bill of sale or other written evidence of value, the then existing fair
             440      market value of the vehicle being sold and the vehicle being traded in, as determined by the
             441      commission;
             442          (19) sprays and insecticides used to control insects, diseases, and weeds for commercial
             443      production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
             444      insecticides used in the processing of the products;
             445          (20) (a) sales of tangible personal property used or consumed primarily and directly in
             446      farming operations, including sales of irrigation equipment and supplies used for agricultural
             447      production purposes, whether or not they become part of real estate and whether or not installed
             448      by farmer, contractor, or subcontractor, but not sales of:
             449          (i) machinery, equipment, materials, and supplies used in a manner that is incidental to
             450      farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
             451      janitorial equipment and supplies;
             452          (ii) tangible personal property used in any activities other than farming, such as office
             453      equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
             454      research, or in transportation; or
             455          (iii) any vehicle required to be registered by the laws of this state, without regard to the use
             456      to which the vehicle is put;
             457          (b) sales of hay;
             458          (21) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
             459      other agricultural produce if sold by a producer during the harvest season;
             460          (22) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp Program,
             461      7 U.S.C. Sec. 2011 et seq.;


             462          (23) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             463      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
             464      or retailer for use in packaging tangible personal property to be sold by that manufacturer,
             465      processor, wholesaler, or retailer;
             466          (24) property stored in the state for resale;
             467          (25) property brought into the state by a nonresident for his or her own personal use or
             468      enjoyment while within the state, except property purchased for use in Utah by a nonresident living
             469      and working in Utah at the time of purchase;
             470          (26) property purchased for resale in this state, in the regular course of business, either in
             471      its original form or as an ingredient or component part of a manufactured or compounded product;
             472          (27) property upon which a sales or use tax was paid to some other state, or one of its
             473      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             474      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if the
             475      tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax Act;
             476          (28) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a person
             477      for use in compounding a service taxable under the subsections;
             478          (29) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
             479      special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
             480      Sec. 1786;
             481          (30) beginning on July 1, 1999, through June 30, 2004, sales or leases of rolls, rollers,
             482      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             483      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
             484      of the federal Executive Office of the President, Office of Management and Budget;
             485          (31) sales of boats of a type required to be registered under Title 73, Chapter 18, State
             486      Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
             487      state and are not thereafter registered or used in this state except as necessary to transport them to
             488      the borders of this state;
             489          (32) sales of tangible personal property to persons within this state that is subsequently
             490      shipped outside the state and incorporated pursuant to contract into and becomes a part of real
             491      property located outside of this state, except to the extent that the other state or political entity
             492      imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the


             493      other state or political entity allows a credit for taxes imposed by this chapter;
             494          (33) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
             495      a sales or use tax is not imposed, even if the title is passed in Utah;
             496          (34) amounts paid for the purchase of telephone service for purposes of providing
             497      telephone service;
             498          (35) fares charged to persons transported directly by a public transit district created under
             499      the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
             500          (36) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
             501          (37) (a) 45% of the sales price of any new manufactured home; and
             502          (b) 100% of the sales price of any used manufactured home;
             503          (38) sales relating to schools and fundraising sales;
             504          (39) sales or rentals of home medical equipment and supplies;
             505          (40) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             506      Section 72-11-102 ; and
             507          (b) the commission shall by rule determine the method for calculating sales exempt under
             508      Subsection (40)(a) that are not separately metered and accounted for in utility billings;
             509          (41) sales to a ski resort of:
             510          (a) snowmaking equipment;
             511          (b) ski slope grooming equipment; and
             512          (c) passenger ropeways as defined in Section 72-11-102 ;
             513          (42) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             514          (43) sales or rentals of the right to use or operate for amusement, entertainment, or
             515      recreation a coin-operated amusement device as defined in Section 59-12-102 ;
             516          (44) sales of cleaning or washing of tangible personal property by a coin-operated car wash
             517      machine;
             518          (45) sales by the state or a political subdivision of the state, except state institutions of
             519      higher education as defined in Section 53B-3-102 , of:
             520          (a) photocopies; or
             521          (b) other copies of records held or maintained by the state or a political subdivision of the
             522      state; and
             523          (46) (a) amounts paid:


             524          (i) to a person providing intrastate transportation to an employer's employee to or from the
             525      employee's primary place of employment;
             526          (ii) by an:
             527          (A) employee; or
             528          (B) employer; and
             529          (iii) pursuant to a written contract between:
             530          (A) the employer; and
             531          (B) (I) the employee; or
             532          (II) a person providing transportation to the employer's employee; and
             533          (b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             534      commission may for purposes of Subsection (46)(a) make rules defining what constitutes an
             535      employee's primary place of employment;
             536          (47) amounts paid for admission to an athletic event at an institution of higher education
             537      that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec.
             538      1681 et seq.;
             539          (48) sales of telephone service charged to a prepaid telephone calling card;
             540          (49) (a) sales of hearing aids; and
             541          (b) sales of hearing aid accessories;
             542          (50) (a) sales made to or by:
             543          (i) an area agency on aging; or
             544          (ii) a senior citizen center owned by a county, city, or town; or
             545          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             546          (51) (a) beginning on July 1, 2000, through June 30, 2002, amounts paid or charged as
             547      admission or user fees described in Subsection 59-12-103 (1)(f) relating to the Olympic Winter
             548      Games of 2002 if the amounts paid or charged are established by the Salt Lake Organizing
             549      Committee for the Olympic Winter Games of 2002 in accordance with requirements of the
             550      International Olympic Committee; and
             551          (b) the State Olympic Officer and the Salt Lake Organizing Committee for the Olympic
             552      Winter Games of 2002 shall make at least two reports during the 2000 interim:
             553          (i) to the:
             554          (A) Olympic Coordination Committee; and


             555          (B) Revenue and Taxation Interim Committee; and
             556          (ii) regarding the status of:
             557          (A) agreements relating to the funding of public safety services for the Olympic Winter
             558      Games of 2002;
             559          (B) agreements relating to the funding of services, other than public safety services, for
             560      the Olympic Winter Games of 2002;
             561          (C) other agreements relating to the Olympic Winter Games of 2002 as requested by the
             562      Olympic Coordination Committee or the Revenue and Taxation Interim Committee;
             563          (D) other issues as requested by the Olympic Coordination Committee or the Revenue and
             564      Taxation Interim Committee; or
             565          (E) a combination of Subsections (51)(b)(ii)(A) through (D);
             566          (52) (a) beginning on July 1, 2001, through June 30, 2004, and subject to Subsection
             567      (52)(b), a sale or lease of semiconductor fabricating or processing materials regardless of whether
             568      the semiconductor fabricating or processing materials:
             569          (i) actually come into contact with a semiconductor; or
             570          (ii) ultimately become incorporated into real property;
             571          (b) (i) beginning on July 1, 2001, through June 30, 2002, 10% of the sale or lease
             572      described in Subsection (52)(a) is exempt;
             573          (ii) beginning on July 1, 2002, through June 30, 2003, 50% of the sale or lease described
             574      in Subsection (52)(a) is exempt; and
             575          (iii) beginning on July 1, 2003, through June 30, 2004, the entire amount of the sale or
             576      lease described in Subsection (52)(a) is exempt; and
             577          (c) each year on or before the November interim meeting, the Revenue and Taxation
             578      Interim Committee shall:
             579          (i) review the exemption described in this Subsection (52) and make recommendations
             580      concerning whether the exemption should be continued, modified, or repealed; and
             581          (ii) include in the review under this Subsection (52)(c):
             582          (A) the cost of the exemption;
             583          (B) the purpose and effectiveness of the exemption; and
             584          (C) the benefits of the exemption to the state; [and]
             585          (53) an amount paid by or charged to a purchaser for accommodations and services


             586      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             587      59-12-104.2 [.]; or
             588          (54) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             589      sports event registration certificate in accordance with Section 41-3-306 for the event period
             590      specified on the temporary sports event registration certificate.




Legislative Review Note
    as of 6-20-01 12:45 PM



This legislation provides for the temporary registration of certain motor vehicles used for a sports
event, and addresses the sales and use taxation and imposition of uniform fees in lieu of property
taxes ("uniform fees") on these motor vehicles. The legislation raises issues related to the
classification of property, such as whether Utah Constitution Article XIII, Section 14, which
requires "uniform statewide fees or uniform statewide rates of assessment or levy," allows the
Legislature to classify property and impose different uniform fees on each class of property. Utah
courts have not yet ruled on the issue of whether legislative classification of property is permissible
under Utah Constitution Article XIII, Section 14, and arguments may be made for and against the
constitutionality of the power of the Legislature to make such classifications.

Office of Legislative Research and General Counsel


Committee Note

The Revenue and Taxation Interim Committee recommended this bill.


[Bill Documents][Bills Directory]